Office Space Provider IndiQube Closer to INR 850 Cr IPO, Files DRHP with SEBI

IndiQube which provides managed office space has filed a DRHP with market regulator Securities and Exchange Board of India (SEBI) for an INR 850 crore initial public offering.

IndiQube, founded in 2015, is a managed office space provider that provides clients with a ‘office in a box’ experience that includes workplace design, interior build out, and a wide range of B2B and B2C services that leverage technology.

The company’s IPO would consist of a new issue of shares worth up to INR 750 crore and an offer for sale (OFS) of up to INR 100 crore.

Rishi Das and Meghna Agarwal, the promoters and cofounders, will sell some of their shares through the OFS.

ICICI Securities and JM Financial are the book running lead managers for the offering. The company’s shares will be listed on both the BSE and the NSE.

IndiQube intends to use INR 462.6 crore of the net proceeds from the new issuance to create new centres, INR 100 crore to settle certain borrowings, and the remainder for general corporate reasons.

Related: Investors Peak XV, Bisque Sell Shares of Office Lending Startup Awfis Worth INR 606 Cr

The company’s net loss increased 72% to INR 341.51 Cr in FY24, from INR 198.11 Cr the previous year. Revenue from operations for the fiscal year under review was INR 867.66 crore, up 44% from INR 601.28 crore in FY23.

For the three months ended June 30, 2024 (Q1 FY25), its loss after tax was INR 42.04 crore on an operating revenue of INR 251.30 crore.

In a statement, IndiQube stated that its EBITDA was INR 263.4 Cr in FY24 and INR 153 Cr in Q1 FY25.

The development comes nearly three months after media reported that the Bengaluru-based startup was in advanced talks with merchant bankers for its IPO.

IndiQube’s board of directors issued a resolution in November to rename the company “IndiQube Spaces Limited” from “IndiQube Spaces Private Limited.”

As of June 30, 2024, the firm claims to manage a portfolio of 103 centers across 13 cities, totaling 7.76 million square feet of area under management (AUM) in built-up area and 1.72 lakh seats.

Its clients include Myntra, UpGrad, Zerodha, No Broker, Redbus, Juspay, Perfios, Moglix, and Ninjacart.

IndiQube is backed by WestBridge Capital, Helion Ventures’ Ashish Gupta, and Aravali Investment Holdings. Notably, except from the cofounders, none of the existing supporters are selling shares through the OFS.

IndiQube has become the latest coworking space provider to register for an IPO, following Awfis’ offering in May of this year. While SEBI authorized Smartworks’ DRHP, it has yet to approve DevX’s IPO offer.

Innov8, 91springboard, Spring House, Incuspaze, and COWRKS are also planning IPOs in the near future. The rising cost of office space, along with an expanding number of new-age software companies in need of office space, is driving the expansion of such coworking space providers.